Franchise Fees for ATCO gas and electric could be increasing in the Town of Fox Creek come the new year.
At their regular meeting on September 9, Fox Creek Council proposed an increase to Franchise Fees charged to ATCO Gas & Pipeline Ltd. and ATCO Electric, effective January 2020.
The gas and pipeline fees were proposed to be set at 15%, which would be a 2.07% increase from the current fee of 12.93% that was set in 2001. The proposed increase means that the average consumer would see a $0.94 increase to their monthly gas bill, and it will generate $14,289 in revenue a year to the Town.
The electric fee was proposed to be increased to 6.5% from the current 5.5% that was made effective in January 2016. The proposed increase means the average consumer would pay $1.23 more a month on their electric bill, and it would generate $33,699 a year in revenue to Fox Creek.
Charging franchise fees grant ATCO the exclusive rights to provide gas and electric distribution services to residents and businesses in Fox Creek. Each year, municipalities have the option to adjust the franchise fee, up to a cap of 35%.